Thu Feb 6, 2014 8:34am PST
Canada Mortgage and Housing Corporation (CMHC) is forecasting B.C. will see 27,800 new homes built in 2014.
In its First Quarter Housing Market Outlook for B.C., CMHC also predicts about the same number of new housing starts in 2015.
That's just slightly better than actual numbers for 2012, when there were 27,465 new housing starts.
With an increased supply of existing homes on the market, CMHC expects prices for existing homes to grow at rates lower than the rate of inflation.
The average home price for 2014 is forecast to be $542,500 in 2014, inching up slightly to $547,100 in 2015.
CMHC expects there will be a shift towards more single-detached homes.
"While the level of housing starts is projected to remain the same on an annual basis this year and next, expect a slight shift toward single-detached housing starts as the economy and labour market gain traction," Carol Frketich, CMHC's regional economist for B.C. said in a press release.
"Single-detached housing starts are forecast to increase this year and next while multiple housing starts are expected to remain relatively unchanged."